Analysis method - “Gann Swings + Price Action”
October 1, 2018
After August’s false downward break of the inside bar, bears responded in September by false break to the upside. Thus, there are neither upward signals nor downward.
Let’s analyze indirect readings of the structure: downswing is completed and upward - doesn’t. Plus, at the 1.2100 level the entry area to the bearish pattern O&U remained untested. Thus, we can consider two scenarios - either continuation of flat in the inside’s range (1.1575-1.1795) or start of upswing towards the 1.2100 region.
Main scenario: Flat in the 1.1575-1.1795 range.
Alternative scenario: Breakout above 1.1800 with continuation of the swing in direction 1.2100.
Search for probable buy signals at the 1.1575 handle.